Implementation of Good Corporate Governance Principles in Increasing the Number of Muzzaki

Abstract

Zakat, Good Corporate Governance Principles, BAZNAS Kota Kediri Public trust in zakat management institutions as non-profit institutions is very important. The establishment of the National Amil Zakat Agency as an effort to maximise zakat governance in Indonesia by providing guarantees for good zakat management, as well as building public trust and realising the enormous potential of zakat in Indonesia, can be realised by applying the principles of Good Corporate Governance to zakat management institutions in order to create added value to zakat management institutions. The growth of zakat that occurs in Kediri City has increased every year, it proves that the potential of zakat in Kediri City is very high. The existence of BAZNAS Institution of Kediri City makes the management of zakat effectively organised with the realisation of an increase in muzakki every year. With the application of these principles, it is able to increase the trust of muzakki and provide satisfaction value for mustahik and improve zakat management in BAZNAS Kediri City. This study aims to determine the application of Good Corporate Governance principles in zakat management institutions. The results showed that the collection, management, and distribution of zakat in BAZNAS Kediri City as a whole have applied the principles of Good Corporate Governance which consists of the principles of transparency, accountability, responsibility, independence, and fairness effectively